Swarna Pragati: Micro-Loans for Rural India
Location: India
Date: Wed May 1
Swarna Pragati (SP) is a provider of micro-housing loans to rural households in India. The Company targets low-income households with Monthly Household Income (MHI) less than $ 400. The Company's loan sizes range from $ 1,500 - $ 11,000 with a tenure of 4-7 years.
India's Shortage of Homes
Location: India
Date: Wed May 1
Over 64% of rural homes in India are semi- pucca houses (houses where either the roof or the walls but not both is made of pucca materials like burnt bricks, stone, cement, concrete or timber) or kutcha houses (houses made from mud, thatch, or other low-quality materials). There is a glaring shortage of over 25 million houses in rural India, and this deficit is increasing by a million houses annually.
Despite the huge demand for housing loans for low-income households in rural India, affordable housing loans account for less than 3% of total loan portfolio for the Indian housing finance companies.
Despite the huge demand for housing loans for low-income households in rural India, affordable housing loans account for less than 3% of total loan portfolio for the Indian housing finance companies.
Loans Seem Out of Reach
Location: India
Date: Wed May 1
Low-income families residing in rural areas are unable to secure housing loans from commercial lenders in the market as they lack any proof of income or credit history.
Pioneering New Solutions
Location: India
Date: Wed May 1
Swarna Pragati is one of the only two players in India focused on providing loans to low-income families in rural areas. The Company currently has operations across six states of Maharashtra, Odisha, Tamil Nadu, Karnataka, West Bengal and Madhya Pradesh. Swarna Pragati's lends across 3,350 villages in these six states.
Loans for Building
Location: India
Date: Wed May 1
Swarna Pragati helps fill a critical gap in the rural housing finance market by providing loans for building pucca houses that replace the temporary structures that are vulnerable to extreme weather conditions.
Loans for Development
Location: India
Date: Wed May 1
Additionally, the Company provides 'Housing+Loans' - for renovation, repairs and extension of existing homes and 'Sanitation Loans'- for building proper toilets in these rural households.
Pioneering Unique Lending Models
Location: India
Date: Wed May 1
The Company has helped over 17,000 rural families access finance and build pucca homes (homes built using bricks, stone, cement, concrete or timber) across rural India. The total projected demand for rural low-income housing loans in India is expected to be over $ 100 billion over the next decade. Swarna Pragati, with its unique lending model, is well positioned to emerge as a dominant player in the rural affordable home finance market.
New Opportunities for Women
Location: India
Date: Wed May 1
Swarna Pragati has pioneered several business practices that allow the Company to serve rural customers across six states in India.
The Company's offerings benefit rural women, who form a majority of the Company's customer base, by providing them the opportunity to join the formal financial system.
The Company's offerings benefit rural women, who form a majority of the Company's customer base, by providing them the opportunity to join the formal financial system.
New Ways to Mortgage
Location: India
Date: Wed May 1
Swarna Pragati provides a flexible suite of loan products including financing for piecemeal or modular home expansion. These smaller loans are easier to service for low-income households.
To overcome the challenges of state registered land titles, Swarna Pragati has developed the innovative concept of 'Para-Legal' mortgage. As a part of this, the local governance bodies such as the Village Panchayat (Village Council) provide endorsement for the loan offered to a community- acknowledged land owner.
To overcome the challenges of state registered land titles, Swarna Pragati has developed the innovative concept of 'Para-Legal' mortgage. As a part of this, the local governance bodies such as the Village Panchayat (Village Council) provide endorsement for the loan offered to a community- acknowledged land owner.
Direct Lending
Location: India
Date: Wed May 1
Swarna Pragati recently introduced and implemented its 'Direct Lending' operations which enables the Company to have greater access and control over its borrowers. The Company has established over 55 direct lending branches across the country and approximately 66% of its current portfolio is sourced through direct lending.
Using Technology for Efficiency
Location: India
Date: Wed May 1
Swarna Pragati has launched a mobile app-based collection system to improve field force efficiency and has recently rolled out electronic collections. Swarna Pragati is an early adopter in the deployment of electronic collections in the rural low-income regions. The Company has centralized its credit appraisal process to standardize operations and improve efficiencies.
Swarna Pragati Customers Say that the Company has Helped them Improve their Quality of Life
Location: India
Date: Wed May 1
Innovative Financing Solutions for the Rural Poor
Location: India
Date: Wed May 1
Swarna Pragati offers housing loans to the underserved rural households in India. It helps low-income households with monthly household income of less than $ 500. This segment is not served by other housing finance companies in India. Swarna Pragati helps fill a critical gap in the rural housing finance market by providing loans for building pucca houses. These houses replace the temporary structures that are vulnerable to extreme weather conditions such as winds and rain.
